Johnson & Johnson (J&J) has completed the sale of its subsidiary LifeScan to private investment firm Platinum Equity for a total consideration of around $2.1bn.
LifeScan offers blood glucose monitoring products such as personal blood glucose meters, testing strips, lancets, point-of-care testing devices and integrated digital solutions under the OneTouch brand.
The business reaches nearly 20 million patients across more than 90 countries. Last year, it generated approximately $1.5bn in net revenues.
J&J noted that following the divestiture it will cater to the needs of diabetes patients via other products, services and solutions in its Medical Device, Pharmaceuticals and Consumer businesses.
This is said to include innovation in various fields, including bariatric surgery, and drugs such as Invokana (canagliflozin) and Invokamet (canagliflozin/metformin HCl).
LifeScan president and CEO Val Asbury said: “We are excited for our future and what we can accomplish with the addition of Platinum Equity’s financial and operational resources.
“We share an unwavering commitment to patient care and know there is tremendous opportunity for LifeScan to grow and evolve. With LifeScan’s talent and capabilities, our iconic OneTouch brand, and Platinum’s support, there’s no limit to what we can achieve.”
The blood glucose monitoring business will now operate as a standalone entity with a new corporate logo and brand identity.
Platinum Equity Partner Jacob Kotzubei said that it will support LifeScan in improving the quality of life for people with diabetes.
The private investment firm proposed a binding offer to acquire LifeScan in March this year. J&J accepted the proposal in June, after consultation with relevant works councils and trade unions.